Australia has strengthened because the world’s fourth largest marketplace for utility scale batteries with new information from analysis consultancy Rystad Energy revealing virtually 3 GW / 8 GWh of storage tasks of battery vitality started to be constructed within the first seven months of 2024.
From pv journal Australia
Rystad Energy stated builders had begun constructing greater than 2.8 GW of latest battery vitality storage capability in Australia for the reason that begin of the yr, laying the muse for what has been one other report yr within the new utility scale battery installations.
A report 4 GW/10 GWh of grid-scale battery vitality storage tasks started development throughout Australia in 2023 however that mark is nearly sure to be eclipsed this yr.
“More than half a yr in and utility battery installations are on observe to achieve what might be a breakout yr in 2023,” stated Rystad renewables and energy group Vice President David Dixon. “With 5 months left within the yr, it is attainable Australia may exceed 5 GW of capability to begin development this yr.”
Dixon stated Australia is now the world’s fourth largest marketplace for utility scale batteries with almost 9 GW of utility batteries underneath development or in operation. Mainland China, with 57 GW underneath development or in operation, continues to be forward of the United States (34 GW) and the United Kingdom (12 GW).
New South Wales (NSW), Queensland and Western Australia dominate development exercise in Australia with 80% of latest capability put in in these states and lots of extra tasks able to enter the development part.
Among the tasks that can quickly be a part of the development pipeline are second stage Eraring battery based by Origin within the NSW Hunter Valley. The $450 million challenge, introduced final week, will add 240 MW and greater than 4 hours of storage (1,030 MWh) within the first part. The preliminary part, which is at present underneath development, consists of a 460 MW capability battery with greater than two hours (1,073 MWh) of storage.
The second part will improve the full capability of the power to 700 MW/2,103 MWh and might be set on-line within the March quarter of 2027. The first part is predicted to achieve industrial operation by the tip of 2025.
Dixon stated the Eraring challenge continued the pattern of longer storage occasions for Australia’s utility batteries.
“Four hours is now the brand new two hours,” he stated, noting that earlier than 2023 batteries will usually final two hours or much less specializing in grid providers resembling frequency management. and community contracts relatively than the time shift of renewables.
Dixon additionally famous that battery prices have come down considerably over the previous 12 months, declaring that the challenge value of round AUD437 ($283) per kWh for the Eraring battery is “the most cost effective we have seen available in the market Australia.”
The Eraring challenge advantages from an activated engineering, procurement and development contract, and authorized website and accessible substation however Dixon stated the price of the challenge displays the lowered value of the battery storage challenge.
“This displays falling costs for utility scale batteries over the previous 12 months, with greenfield challenge capex anticipated to be near or beneath $600 per kWh, relying on the scale and timing of storage,” he stated. .
Rystad’s newest capital expenditure estimate for a utility battery in Australia is AUD480/kWh for a four-hour battery, to AUD590/kWh for a two-hour battery.
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